Flavor: strong as ever.
Implementation: weak, weak, weak, and way off flavor.
Basically, in 3.0e, it was great to have free +5 arrows -- they could bypass all DR, and thus hurt anything! Arrow enhancement stacked with bow enhancement, so it was a sweet deal all around.
Then 3.5e came along and nerfed the Cleric archer trick*, made DR more interesting, and these two changes taken together really ruined the mechanical justification for the Arcane Archer's main class feature. IMHO the changes were necessary -- 3.0e Cleric archers were too strong, and stacking arrow enhancement bonus on top of bow bonus made archery in general too strong,
and I like the new DR rules,
but they should have changed how the AA worked, too.
I've done a replacement for this PrC, and it's available in House Rules -- er, Archives -- anyway, here:
http://www.enworld.org/archive/index.php/t-67172.html
Cheers, -- N
*) Cast
greater magic weapon twice, once on bow and once on arrows, for free super-magic every day.